SEP and Roth

[Lion]

I know I should know this, and I know it's sitting here in front of me in my research materials, but... I'm a SMLLC taxed on a Schedule C. I have a SEP. Can I also contribute to my Roth IRA? Limits apply?

Similarly, I have clients with Simple plans; can they contribute to an IRA? I know the company cannot have another retirement plan with a Simple, but can the employee or partner of the corporation or partnership also contribute to an IRA of either type in the same year they contribute to a Simple via their company?

457 plan for a public employee does NOT combine with limits for his 403(b), right? So, he could max out his 403(b) and still contribute to a 457?

I'm way too sleep deprived to think straight this morning. Thanks for any help.

[JCH]

I'll answer the third question. Yes, you can contribute to both a 457 and a 403(b), and max out on each depending on the individual limits for each plan based on age and whether or not you're a public employee in the case of the 457.

[Burke]

As to the first question, you treat self-employed plans like SEPS, SIMPLES, etc just the same as you do 401K's from a big corporation. It's a retirement plan, and the IRA limits apply if the TP is an active participant.

[ChEAr$]

As to the first question, you treat self-employed plans like SEPS, SIMPLES, etc just the same as you do 401K's from a big corporation. It's a retirement plan, and the IRA limits apply if the TP is an active participant.

The SEP plan maintained by an employer (and in OP's case her LLC is the employer) makes the contribution into an IRA established for that purpose.
If she otherwise qualifies, she may also make contributions to separate ROTH IRA.

In my case, my corporation contributes 25% of my salary into the IRA for that
purpose, and I also send in another $ 6,000 to my ROTH IRA.

[taxcraft]

Multiple Plans

If has Traditional IRA or Roth IRA = no effect on SEP contributions, no effect on SIMPLE contributions,no effect on profit sharing or money purchase contributions,no effect on 401(k) contributions,no effect on 403(b) contributions,no effect on 457(h) contributions.

If has SEP IRA = May affect ability to deduct the IRA contribution but can contribute the max to both IRA & SEP),no affect on Roth IRA contributions, may make salary deferral contributions of up tp $11500 plus receive employer contributions to a SIMPLE and receive up to $49000 in the SEP, can receive up to $49000 in MONEY PURCHASE/PROFIT SHARING and also SEP for a total of $98000,can get up to $49000 in a 401(k) and also SEP for a total of $98000,can receive up to $49000 in a 403(b) and also SEP for a total of $98000,can receive up to $16500 in a 457(h) and up to $49000 in the SEP. WARNING: CONTRIBUTIONS ARE REDUCED IF MORE THAN ONE BUSINESS IS INVOLVED.

Note: It cost money to get info like this.

[Lion]

Thank you all

I owe you all. You've confirmed my thoughts, but I couldn't find how the various retirement plans interacted in writing. (I think my old, old QF had a helpful chart created by our friends now at TTB who probably can't use anything similar!) However, I was not taking a wide enough view of SIMPLEs, so that info was a good education and will have me looking into possibilities for a couple of clients. Like ChEAr$ (even though I'm not close to done with my own return yet) my company will contribute to my SIMPLE and I'll contribute to my Roth. The 457 question was personal, also; hubby retires this year with his 403(b) and will have a lump sum that they're telling him to just tuck into a 457. I didn't know his district had a 457, so I quickly pulled out my old text on employee benefits to read up on retirement plans since I remembered something about the 457 not being limited by any 403(b) contributions. Thank you everyone for jump starting my brain.